7 Holiday Shopping Predictions for 2021: What Retailers Need to Know

Introduction

As we approach the 2021 holiday season, retailers and eCommerce businesses are gearing up for what promises to be another unprecedented year. The 2020 holiday season saw a significant surge in online sales, with U.S. consumers breaking records during the Cyber 5 period (Thanksgiving Day to Cyber Monday), resulting in a 20.6% increase in online sales. This growth was largely attributed to the COVID-19 pandemic and subsequent lockdowns, which prevented many people from shopping in physical stores.

With the landscape of retail continuing to evolve, it's crucial for businesses to stay ahead of the curve and adapt to changing consumer behaviors. In this article, we'll explore seven key predictions for the 2021 holiday shopping season and discuss how retailers can prepare for success. As a Digital Logistics Platform, FreightAmigo is well-positioned to help businesses navigate these trends and optimize their supply chain operations.

1. Increased Online and Hybrid Shopping

One of the most significant trends we expect to see in the 2021 holiday season is the continued growth of online shopping, even as physical stores begin to reopen. The future of retail lies in a combination of both online and offline experiences, creating a seamless omnichannel approach.

Key points to consider:

• Online shopping is here to stay and will continue to grow
• Traditional brick-and-mortar stores are increasingly entering the digital space
• Consumers encounter multiple digital touchpoints before making a purchase decision
• Online shopping offers advantages such as detailed product information, customer reviews, and price comparisons

To succeed in this hybrid environment, retailers must focus on delivering exceptional shopping experiences both online and in-store. FreightAmigo's Digital Logistics Platform can help businesses streamline their supply chain operations, ensuring that products are available across all channels and can be delivered efficiently to customers, regardless of their preferred shopping method.

2. Shopping Starts Early

Another key prediction for the 2021 holiday season is that consumers will begin their shopping earlier than usual. This trend is largely influenced by the supply chain disruptions experienced in 2020, which have left a lasting impact on consumer perceptions.

In 2020, research showed that 70% of shoppers intended to start their holiday shopping earlier to avoid crowds and potential stock shortages. We expect this trend to continue in 2021, with consumers eager to secure their desired items well in advance of the holiday rush.

To capitalize on this trend, retailers should consider:

• Launching holiday promotions earlier than usual
• Ensuring adequate inventory levels to meet early demand
• Implementing marketing strategies to attract early shoppers

FreightAmigo's Digital Logistics Platform can help retailers prepare for this early shopping trend by providing real-time visibility into inventory levels and facilitating efficient restocking processes. By leveraging our Digital Logistics Solution, businesses can ensure they have the right products in the right place at the right time to meet consumer demand.

3. Early Preparation of Inventory

Given the ongoing supply chain constraints and the expectation of increased consumer demand, early inventory preparation is crucial for retailers this holiday season. Typically, items should be ordered 3-9 months in advance to ensure timely fulfillment during the holiday shopping period.

Key factors for retailers to consider include:

• Will they be able to prepare sufficient inventory?
• Will supplies arrive on time?
• Will shipping constraints continue?
• Will the reopening of physical stores alleviate pressure on carriers?

To address these challenges, FreightAmigo's Digital Logistics Platform offers comprehensive supply chain management tools. Our platform enables retailers to:

• Monitor inventory levels in real-time
• Optimize order management and forecasting
• Streamline supplier communications
• Coordinate efficient shipping and logistics processes

By leveraging our Digital Logistics Solution, retailers can better prepare for the holiday season and mitigate potential supply chain disruptions.

4. Demand for Convenient Options

"Convenience" will be the biggest holiday shopping trend for 2021. To position themselves effectively this holiday season, retail businesses should develop strategies based on the following customer demands:

• Can I purchase online, when and how I want?
• Can I pick it up in-store when I want?
• Can I reserve in-store and have the product waiting for me to try?
• Can I get immediate delivery?
• Can I return my purchase through a simple collection service, or return it to the store and have it replaced?

One popular option that addresses many of these demands is Buy Online, Pickup In-Store (BOPIS). This service allows consumers to make purchases online and pick up their orders in-store, offering flexibility and convenience.

FreightAmigo's Digital Logistics Platform can support retailers in implementing these convenient options by:

• Facilitating seamless inventory management across online and offline channels
• Enabling real-time order tracking and status updates
• Streamlining last-mile delivery operations for efficient home delivery services
• Supporting reverse logistics processes for hassle-free returns

By leveraging our Digital Logistics Solution, retailers can enhance their ability to offer convenient shopping options and meet the evolving needs of their customers.

5. Mobile Shopping

Mobile shopping is expected to play an increasingly important role in the 2021 holiday season. The convenience of purchasing items from mobile devices makes it particularly attractive for shoppers on the go and for last-minute purchases.

However, retailers should be aware of the potential downside of mobile shopping: increased cart abandonment rates. To address this challenge, online retailers should focus on:

• Providing a seamless end-to-end mobile shopping experience
• Optimizing website and app performance for mobile devices
• Offering mobile-specific discounts and promotions
• Implementing easy-to-use mobile payment options

FreightAmigo's Digital Logistics Platform can support retailers in their mobile commerce efforts by:

• Ensuring real-time inventory updates across all sales channels, including mobile
• Facilitating efficient order processing and fulfillment for mobile purchases
• Providing mobile-friendly tracking and status updates for customers

By leveraging our Digital Logistics Solution, retailers can enhance their mobile shopping experience and reduce cart abandonment rates, ultimately driving more sales during the holiday season.

6. Social Media Will Be More Significant

eCommerce experts predict that social media will play an increasingly important role in holiday shopping for 2021. With the lasting impact of the pandemic, shoppers are using more digital channels for their purchases, and brand discovery is happening more frequently on mobile devices through social media platforms.

To capitalize on this trend, merchants should:

• Develop a strong social media presence across relevant platforms
• Create a well-planned social media strategy for the holiday season
• Implement social commerce features, such as shoppable posts and in-app purchasing
• Leverage user-generated content and influencer partnerships

While FreightAmigo's primary focus is on Digital Logistics Solutions, our platform can indirectly support retailers' social media efforts by:

• Ensuring accurate inventory information is reflected across all sales channels, including social media
• Facilitating efficient order fulfillment for purchases made through social platforms
• Providing real-time shipping and delivery updates that can be shared on social media

By integrating our Digital Logistics Platform with their social media strategies, retailers can create a seamless shopping experience for customers across all touchpoints.

7. Reviews Will Play a Big Factor

Customer reviews will be increasingly important in the 2021 holiday season. Industry experts agree that the availability of customer feedback and social proof has been critical to a merchant's success. Consumers want to be fully informed before making a purchase and are willing to do their due diligence.

To leverage the power of reviews, retailers should:

• Actively encourage customers to leave reviews
• Respond to both positive and negative reviews promptly and professionally
• Display a mix of both positive and negative comments to build trust
• Incorporate customer reviews into product pages and marketing materials

While FreightAmigo's Digital Logistics Platform doesn't directly manage customer reviews, it can contribute to positive customer experiences that lead to favorable reviews by:

• Ensuring accurate and timely order fulfillment
• Providing real-time shipping and delivery updates
• Facilitating efficient returns and exchanges
• Minimizing shipping errors and delays

By leveraging our Digital Logistics Solution to optimize their supply chain operations, retailers can create positive experiences that encourage customers to leave favorable reviews, ultimately driving more sales during the holiday season.

Conclusion

As we approach the 2021 holiday season, retailers must be prepared to adapt to these emerging trends and consumer behaviors. By focusing on enhanced online and hybrid shopping experiences, early preparation, convenient options, mobile optimization, social media engagement, and leveraging customer reviews, businesses can position themselves for success during this critical period.

FreightAmigo's Digital Logistics Platform is designed to support retailers in navigating these challenges and optimizing their supply chain operations. Our comprehensive Digital Logistics Solution enables businesses to streamline inventory management, enhance order fulfillment, and provide seamless shipping experiences across all channels.

By partnering with FreightAmigo, retailers can ensure they have the tools and capabilities needed to meet customer demands and thrive in the evolving retail landscape. As the holiday season approaches, we encourage businesses to explore how our Digital Logistics Platform can help them prepare for success and deliver exceptional experiences to their customers.